Trade preferences for developing countries: A survey of results

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Abstract
Empirical studies of the trade and development effects of the major preferential trading schemes between the industrialised countries and the developing countries are surveyed. Most studies find the agreements to be trade creating, improving welfare for the donor, though general equilibrium analysis indicates that terms‐of‐trade deterioration offsets efficiency gains. There is some evidence that trade preferences stimulate LDC exports of preferred products, but total exports are not significantly affected due to limited product coverage. The existing literature does not provide evidence on the degree of infant industry protection or on economic diversification of the beneficiaries.